Mauritius to fund solar project through $45m green bonds
By Faridat Salifu
Mauritian Envolts says it will introduce a green bond program worth $45 million to finance the construction of 13 photovoltaic solar power plants in the island country.
The launch of the green bond programme is expected to contribute to the growing green bond market in Mauritius. Envolt’s initial green bond issue will be for 510 million Mauritian rupees, equivalent to $11.5 million.
The green bond program launched by Envolt, a subsidiary of Mauritian conglomerate, ENL, is expected to continue until 2028.
The funds raised through the issuance of these green bonds will be utilized for the construction and operation of 13 solar photovoltaic parks, collectively generating 14.4 MWp of power.
It was gathered that the completion of these solar plants in Mauritius is estimated to take between 10 to 17 months. According to FSD Africa, a UK-based finance company supporting the initiative, the green bond issue is a significant milestone for both the renewable energy sector and the capital markets in the country.
It marks the first instance of a green bond being used to finance clean energy projects in the country.
FSD Africa further stated that the green bonds will be the first of their kind in Mauritius and will be used to adhere to the 2021 Green Bond Principles established by the International Capital Market Association (ICMA).
On its part, MCB Capital Markets, an investment bank based in Port Louis, Mauritius, will provide advisory services for the Envolt transaction.
This initiative is part of the Southern African Development Community (SADC) Green Bond Programme, supported by FSD Africa, which will continue until March 2024.